The designation of a risk as internal is all about context. If something is mostly within your control, it is internal. For example, governance risk is internal to an organization but isn't internal to a project.
Health & Safety Risk
Internal Risk vs External RiskInternal risks are fully within your control. External risks are substantially beyond your control. It would be incorrect to think that risks are either internal or external. The vast majority of risks are partially under your control and partially beyond your control. As such, the distinction between internal and external risk isn't always useful and is only used in specialized domains such as project management whereby people want to focus on managing the risks that are fully controllable. For example, project managers aren't typically concerned with whether a project produces business results but rather whether the project delivers to its commitments in areas such as budget, schedule, functionality and quality.
Managing External RiskExternal risks aren't fully within your control but they are certainly manageable. For example, the competitive risks that your competition will improve their products can be managed by improving your own products.
|Overview: Internal Risks
Risks that are fully within your control.
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